Thursday, September 10, 2009

The United States is Bankrupt

As we listen to the health care debate, what is getting lost in the discussion is that the United States is already bankrupt by any standard. We currently have a $12 trillion dollar deficit that eventually must be paid back to the Chinese and others that have purchased US Treasury Bonds. There is no Social Security Trust Fund. There is an unfunded liability of $44 trillion of Social Security benefits that are technically owed to baby boomers. The money is not there. It was stolen by politicians of both parties to buy votes and fund government operating expenses for the last 40 years. As the money was being stolen, the federal government gave the Social Security Trust Fund IOU's that are not worth the paper they were written on. Oh, yes, these IOU's are backed by the full faith and credit of the United States; but that does not mean much when the government does not have the money from annual tax proceeds to write the check. And, then there is the $10 trillion that will be needed to fund Medicare that is also not there because there are not enough people paying in to the system to cover those on Medicare in the next ten years. There have been more than 20 million tragic abortions since 1971. This lost generation is not here to pay into either Social Security or Medicare to cover these expenses for baby boomers.

But, if that was it; maybe there would be a way out of this mess that is easy. But in addition, the federal government has promised hundreds of billions of dollars; maybe even trillion of dollars in pensions to federal employees. This is a state problem as well. Many of these employees are not on Social Security. Instead they are owed pensions that may be three or four times what they would have received if they had paid into Social Security like the rest of us saps. Finally, President Obama is now saying that there will be $10 trillion more in deficit spending in the next ten years to add to the $12 trillion already on the books. If you believe it will only be $10 trillion dollars given the government's track record and all of Obama's Socialist schemes, I have some desert land I want to sell you.

Ultimately, the only way for the federal government to deal with this mess is to start printing money which is already happening. This will lead to very high inflation and interest rates and the collapse of the dollar. This is the reason the Chinese are now investing in commodities. They see the collapse of our dollar coming. This is also the reason the price of gold is now more than $1,000 an ounce and it will go much higher.

If we the American people do not take back our country and put an end to all these deficits including Obama'sHealthScare scheme, within 10 years we will see the economic collapse of the United States. The balloon will finally burst. Don't think it can't happen. The Soviet Union did not collapse because its military was weak. The Soviet Union collapsed, which resulted in its dismemberment, because corrupt Communist politicians destroyed the economy in that country. The politicians in the Wiemar Republic between the two World Wars in Germany destroyed their economy by printing money and causing extraordinary inflation which ultimately led to economic collapse and Adolf Hitler. And, we know the end of that horrible story. Socialist politicians in Spain are currently destroying that country. Their unemployment rate is now at 19%; yet the Socialists plan to raise taxes, which is only going to make matters worse.

It is very clear that our elected representatives of both political parties have acted recklessly for years If this were happening in any corporation, these leaders would be in jail. Bernie Madoff stole and mismanaged a few billion dollars in a pyramid scheme. Our elected representatives have mismanaged trillions of dollars in a pyramid scheme to the point of bankrupting our nation. If this process continues we will have economic collapse and civil strife. We need term limits and citizen politicians not professional politicians who continue to feed at the trough. Isn't it interesting that politicians in Washington that earn $170,000 a year, some how end up as millionaires after years in office. How is this possible?

It is time for Americans to stand up and JUST SAY NO. The only defensible reason for deficit spending is a national emergency to defend our country. Spending trillions to fund social programs, no matter how well intended, is leading to the demise of the United States. The more people that are on the dole, in one form or another, the harder it is to stop the deficit spending. Creating another huge entitlement like Obama'sHealthScare Program at this time in our history is insane. While we need common sense health care reform, to add even more trillions to the deficit will just speed the economic collapse of our country. And, to be clear, if every dime was taken from the "rich", that in Obama's world is every family or small business that earns in excess of $250,000, it still would be impossible to cover all the deficits I previously referenced. It is time for a reality check. We have to get our house in order. If we fail to implement prudent fiscal management and soon, the United States that has been the beacon of hope for the world will cease to exist as the nation we know and love. We just can't let that happen.